Summary Information on Sony Assurance s Financial Results for the Nine Months Ended December 31, 2017

Transcription

1 February 14, 2018 Sony Financial Holdings Inc. Summary Information on Sony Assurance s Financial Results for the Nine Months Ended <Contents> 1. Balance Sheets P.2 2. Statements of Income P.3 3. Financial Summary (YearonYear Comparison) P.4 4. Premiums and Losses Paid by Type of Policy P.5 5. Nonconsolidated Solvency Margin Ratio P.6 Disclaimer: This English translation is prepared for the readers convenience. When there are any discrepancies between original Japanese version and English translation version, the original Japanese version always prevails. 1

2 1. Balance Sheets As of March 31, 2017 As of Assets: Cash and deposits 8,951 14,918 Securities 137, ,230 Tangible fixed assets 3,399 2,614 Intangible fixed assets 6,529 6,202 Other assets 22,125 20,424 Deferred tax assets 7,978 8,784 Total Assets 186, ,175 Liabilities: Underwriting reserves 144, ,805 Reserve for outstanding losses and claims 38,340 40,864 Underwriting reserves 106, ,940 Other liabilities 9,877 6,396 Income taxes payable 1,746 1,120 Others 8,130 5,275 Reserve for employees retirement benefits 1,440 1,564 Reserve for directors retirement benefits 36 Reserve for employees bonuses 1, Reserve under the special laws Reserve for price fluctuations Total Liabilities 157, ,490 Net Assets: Shareholders equity Common stock 20,000 20,000 Capital surplus 3,389 3,389 Retained earnings 4,808 6,710 Total shareholders equity 28,197 30,099 Valuation and translation adjustments Net unrealized gains (losses) on other securities, net of taxes 1,211 1,585 Total valuation and translation adjustments 1,211 1,585 Total Net Assets 29,409 31,685 Total Liabilities and Net Assets 186, ,175 2

3 2. Statements of Income Ordinary Revenues 75,944 82,422 Underwriting income 74,323 81,062 (Net premiums written) 74,273 81,016 (Interest and dividends on deposits of premiums) Investment income 1,595 1,330 (Interest income and dividends) 994 1,001 (Gains on sale of securities) (Transfer to interest and dividends on deposits of premiums) (50) (46) Other ordinary income Ordinary Expenses 70,948 77,383 Underwriting expenses 52,556 56,740 (Net losses paid) 36,941 38,534 (Loss adjustment expenses) 5,519 5,574 (Net commissions and brokerage fees) 1,212 1,340 (Provision for reserve for outstanding losses and claims) 1,503 2,524 (Provision for underwriting reserves) 7,378 8,767 Operating, general and administrative expenses 18,388 20,641 Other ordinary expenses 4 1 Ordinary Profit 4,995 5,039 Extraordinary Gains Extraordinary Losses Losses on sale or disposal of fixed assets 0 1 Provision for reserve under the special laws Provision for reserve for price fluctuations Income Before Income Taxes 4,975 5,015 Income Taxes Current 1,780 2,306 Income Taxes Deferred (431) (950) Total Income Taxes 1,348 1,355 Net Income 3,626 3,659 3

4 3. Financial Summary (YearonYear Comparison) For the nine months ended For the nine months ended Change (Amount) Change (%) Gross direct premiums written 73,317 80,043 6, % (Direct premiums written) 73,317 80,043 6, Ordinary Income (expenses) Ratios Extraordinary Gains (losses) Underwriting income 74,323 81,062 6, (Net premiums written) 74,273 81,016 6, Underwriting expenses 52,556 56,740 4, (Net losses paid) 36,941 38,534 1, (Loss adjustment expenses) 5,519 5, (Net commissions and brokerage fees) 1,212 1, Investment income 1,595 1,330 (264) (16.6) (Interest income and dividends) 994 1, (Gains on sale of securities) (275) (42.4) Investment expenses Operating, general and administrative expenses 18,388 20,641 2, (Operating, general and administrative expenses related to underwriting) 18,346 20,594 2, Other ordinary income, net Ordinary profit 4,995 5, (Underwriting profit) 3,420 3, Extraordinary Gains Extraordinary Losses Extraordinary gains (losses), net (20) (23) (2) Income Before Income Taxes 4,975 5, Income Taxes Current 1,780 2, Income Taxes Deferred (431) (950) (519) Total Income Taxes 1,348 1, Net Income 3,626 3, Net loss ratio 57.2% 54.4% Net expense ratio 26.3% 27.1% Notes: 1. Underwriting profit = Underwriting income (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses) Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc. 2. Ratios are calculated as follows: Net loss ratio=(net losses paid + Loss adjustment expenses) / Net premiums written x 100 Net expense ratio=(net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100 4

5 4. Premiums and Losses Paid by Type of Policy Direct Premiums Written Amount Composition YoY Change Amount Composition YoY Change % % % % Fire (34.4) (12.7) Marine Personal accident 6, , (1.0) Voluntary automobile 66, , Compulsory automobile liability Total 73, , Net Premiums Written Amount Composition YoY Change Amount Composition YoY Change % % % % Fire (48.9) (36.6) Marine (2) (0.0) (106.8) Personal accident 6, , (2.0) Voluntary automobile 66, , Compulsory automobile liability 1, , Total 74, , Net Losses Paid Amount YoY Change Net loss ratio Amount YoY Change Net loss ratio % % % % Fire (4.7) Marine (9) (107.6) Personal accident 1, , Voluntary automobile 34, , Compulsory automobile liability Total 36, ,

6 5. Nonconsolidated Solvency Margin Ratio As of March 31, 2017 As of (A) Total nonconsolidated solvency margin 46,724 54,868 Capital or treasury, etc. Reserve for price fluctuations Contingency reserve Catastrophe reserve General reserve for possible loan losses Net unrealized gains on other securities and net deferred gains (losses) on hedging instruments (before tax deductions) Net unrealized gains on real estate Excess refund reserve Subordinated debt The portion of the excess refund reserve and subordinated debt that is not included in the margin Deductible items Others 26,439 30, ,542 20,107 1,514 1, ,372 (B) Total nonconsolidated risk (R 1 +R 2 ) 2 +(R 3 +R 4 ) 2 +R 5 +R 6 12,786 13,548 Ordinary insurance risk (R 1 ) 11,370 12,097 Thirdsector insurance risk (R 2 ) Assumed interest rate risk (R 3 ) Asset management risk (R 4 ) 1,431 1,594 Business management risk (R 5 ) Major catastrophe risk (R 6 ) 1,033 1,034 (C) Nonconsolidated solvency margin ratio [(A)/{(B) 1/2}] % % Note: The above figures are calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act of Japan and Ministry of Finance Public Notice No. 50 of A part of calculations for nonconsolidated solvency margin ratio as of is calculated according to simplified methods in major catastrophe risk. The figure is assumed to be equivalent to the amount as of September 30, <Nonconsolidated Solvency Margin Ratio> Nonlife insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity on savingstype insurance. Nonlife insurance companies must also maintain sufficient ability to cover against risk events which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold. Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The nonconsolidated solvency margin ratio (item (C) in the table) is an indicator of an insurer s ability to pay, calculated as prescribed by the Insurance Business Act of Japan, based on its percentage holdings of capital and other reserves (in other words, the total nonconsolidated solvency margin, as indicated by (A) ). Risk events which exceed the normal estimates refers to the total of the amounts represented by the following risks : (1) Insurance underwriting risk : Risk which exceeds the normal estimates for the rate of accident occurrence (Ordinary insurance risk) (excluding major catastrophe risk) (Thirdsector insurance risk) (2) Assumed interest rate risk : Risk that actual investment yields will fall below the investment yield assumed when calculating premiums (3) Asset management risk : Risk arising from such factors as unexpectedly large fluctuations in prices on held securities and other assets (4) Business management risk : Unexpected risk to business management other than (1) through (3) above and (5) (5) Major catastrophe risk : Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon) A nonlife insurer s ability to pay (total nonconsolidated solvency margin), as indicated by such factors as its capital and reserves, is the total of the insurer s net assets (excluding the amount of expected outflow from the company), reserves (such as the reserve for price fluctuations and catastrophe reserve) and a portion of its net unrealized gains on real estate. The nonconsolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurers. When this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments. 6